Contents
Chapter 1—Introductory 1
Part 1.1—Preliminary 1
1............ Short title [see Note 1]....................................................................... 1
2............ Commencement [see Note 1].............................................................. 1
3............ Constitutional basis for this Act........................................................ 1
4............ Referring States................................................................................... 2
5............ General territorial application of Act................................................. 4
5A......... Application to the Crown.................................................................. 7
5B......... ASIC has general administration of this Act...................................... 7
5C......... Application of the Acts Interpretation Act 1901................................. 7
Part 1.1A—Interaction between Corporations legislation
and State and Territory laws 9
5D......... Coverage of Part................................................................................. 9
5E.......... Concurrent operation intended........................................................... 9
5F.......... Corporations legislation does not apply to
matters declared by State or Territory law to be an excluded matter 10
5G......... Avoiding direct inconsistency arising between the
Corporations legislation and State and Territory laws 12
5H......... Registration of body as company on basis of State
or Territory law 19
5I........... Regulations may modify operation of the
Corporations legislation to deal with interaction between that legislation and
State and Territory laws................................................................... 20
Part 1.2—Interpretation 23
Division 1—General 23
6............ Effect of this Part............................................................................. 23
7............ Location of other interpretation provisions..................................... 23
9............ Dictionary......................................................................................... 24
Division 2—Associates 83
10.......... Effect of Division............................................................................. 83
11.......... Associates of bodies corporate......................................................... 83
12.......... References in Chapters 6 to 6C, and other
references relating to voting power and takeovers etc. 83
13.......... References in Chapter 7.................................................................... 85
15.......... General.............................................................................................. 85
16.......... Exclusions......................................................................................... 86
17.......... Associates of composite person that carries on a
financial services business 87
Division 3—Carrying on business 88
18.......... Carrying on business: otherwise than for profit............................... 88
19.......... Businesses of a particular kind......................................................... 88
20.......... Carrying on a business: alone or together with
others...................... 88
21.......... Carrying on business in Australia or a State or
Territory................ 88
Division 5A—Types of company 90
45A....... Proprietary companies..................................................................... 90
Division 6—Subsidiaries and related bodies corporate 92
46.......... What is a subsidiary......................................................................... 92
47.......... Control of a body corporate’s board................................................ 92
48.......... Matters to be disregarded................................................................. 93
49.......... References in this Division to a subsidiary...................................... 93
50.......... Related bodies corporate.................................................................. 94
50AAA. Associated entities............................................................................ 94
50AA.... Control.............................................................................................. 95
Division 7—Interpretation of other expressions 96
52.......... Doing acts......................................................................................... 96
52A....... Signing............................................................................................... 96
53.......... Affairs of a body corporate.............................................................. 96
53AA.... Business affairs of a body corporate................................................ 98
53AB.... Business affairs of a natural person.................................................. 98
53AC.... Business affairs of a partnership...................................................... 99
53AD.... Business affairs of a trust................................................................. 99
57.......... Classes of shares or interests in managed
investment schemes...... 100
57A....... Meaning of corporation.................................................................. 100
58AA.... Meaning of court and Court........................................................... 100
58B....... Discharge of obligations under this Act.......................................... 101
59.......... Debentures as consideration for acquisition of
shares.................... 101
64.......... Entering into a transaction in relation to shares
or securities......... 101
64A....... Entities............................................................................................ 101
64B....... Entities connected with a corporation............................................ 102
65.......... Eligible money market dealer.......................................................... 103
66A....... Exempt bodies................................................................................ 103
70.......... Extension of period for doing an act............................................... 104
73A....... When a court is taken to find a person guilty of an
offence........... 104
75.......... Inclusion in official list................................................................... 104
79.......... Involvement in contraventions....................................................... 104
80.......... Jervis Bay Territory taken to be part of the
Australian Capital Territory 105
82.......... Offers and invitations to the public................................................ 105
83.......... Officers, and other persons, in default........................................... 105
86.......... Possession...................................................................................... 106
88A....... Public document of a body corporate............................................. 106
88B....... Qualified accountants..................................................................... 107
89.......... Qualified privilege........................................................................... 107
90.......... Receivers and managers.................................................................. 107
92.......... Securities......................................................................................... 108
95A....... Solvency and insolvency................................................................ 109
Division 8—Miscellaneous interpretation rules 110
100........ Address of registered office etc...................................................... 110
100A..... Operation of certain laws relating to instruments on
which stamp duty has not been paid 110
101........ Amount of stock representing a number of shares......................... 111
102........ Applications to be in writing.......................................................... 111
102B..... In Australia or elsewhere, in this
jurisdiction or elsewhere etc...... 111
102C..... In Australia..................................................................................... 111
103........ Effect of certain contraventions of this Act................................... 111
104........ Effect of provisions empowering a person to
require or prohibit conduct 112
105........ Calculation of time.......................................................................... 112
106........ Performance of functions by Commission delegate........................ 112
107........ Notice in relation to top 20 members of a class............................. 112
108........ Parts of dollar to be disregarded in determining
majority in value of creditors etc. 113
109........ References to persons, things and matters..................................... 113
109X..... Service of documents...................................................................... 113
Part 1.2A—Disclosing entities 115
Division 1—Object of Part 115
111AA.. Object of Part................................................................................. 115
Division 2—Definitions 116
111AB.. Terms defined in Division.............................................................. 116
111AC.. Disclosing entity............................................................................. 116
111AD.. ED securities................................................................................... 116
111AE... Securities of body or undertaking that is included in
a licensed market’s official list 116
111AF... Securities (except debentures and managed investment
products) to which lodged or deemed prospectus relates........................................................................................................ 118
111AFA Managed investment products held by 100 or more persons........ 118
111AG.. Securities issued as consideration for an acquisition
under an off‑market takeover bid or Part 5.1 compromise or
arrangement..................................................................................... 118
111AH.. When a person holds securities for the purposes of
sections 111AF, 111AFA and 111AG 119
111AI.... Debentures that need trustee appointed under section 283AA..... 119
111AJ... Regulations may declare securities not to be ED
securities............ 119
111AK.. ED securities of a disclosing entity................................................ 120
111AL... Listed or unlisted disclosing entity................................................. 120
111AM. Quoted ED securities...................................................................... 120
Division 3—Significance of being a disclosing entity 121
111AN.. Division contains outline of significance of being a
disclosing entity 121
111AO.. Accounting requirements................................................................ 121
111AP... Continuous disclosure requirements............................................... 121
111AQ.. Prospectus relief............................................................................. 121
111AQA..................................................... Product
Disclosure Statement relief 121
Division 4—Exemptions and modifications 122
111AR.. Meaning of disclosing entity provisions......................................... 122
111AS... Exemptions by regulations............................................................. 122
111AT.. Exemptions by ASIC...................................................................... 122
111AU.. Enforcing conditions of exemptions............................................... 122
111AV.. Modifications by regulations.......................................................... 123
111AW. Exemptions and modifications have effect..................................... 123
111AX.. Effect of Division........................................................................... 123
Part 1.4—Technical provisions about aids for readers 124
111J...... Small business guide....................................................................... 124
Part 1.5—Small business guide 125
1............ What registration means................................................................. 125
2............ The company structure for small business..................................... 130
3............ Setting up a new company............................................................. 130
4............ Continuing obligations after the company is set
up....................... 133
5............ Company directors and company secretaries................................. 136
6............ Shares and shareholders.................................................................. 139
7............ Signing company documents.......................................................... 140
8............ Funding the company’s operations................................................ 141
9............ Returns to shareholders.................................................................. 141
10.......... Annual financial reports and audit.................................................. 142
11.......... Disagreements within the company............................................... 144
12.......... Companies in financial trouble....................................................... 145
Chapter 2A—Registering a company 147
Part 2A.1—What companies can be registered 147
112........ Types of companies....................................................................... 147
113........ Proprietary companies................................................................... 148
114........ Minimum of 1 member................................................................... 149
115........ Restrictions on size of partnerships and
associations.................... 149
116........ Trade unions cannot be registered.................................................. 150
Part 2A.2—How a company is registered 151
117........ Applying for registration................................................................ 151
118........ ASIC gives company ACN, registers company and
issues certificate 153
119........ Company comes into existence on registration.............................. 154
119A..... Jurisdiction of incorporation and jurisdiction of
registration......... 154
120........ Members, directors and company secretary of a
company........... 155
121........ Registered office............................................................................. 155
122........ Expenses incurred in promoting and setting up
company.............. 155
123........ Company may have common seal.................................................. 156
Chapter 2B—Basic features of a company 157
Part 2B.1—Company powers and how they are exercised 157
124........ Legal capacity and powers of a company...................................... 157
125........ Constitution may limit powers and set out objects....................... 158
126........ Agent exercising a company’s power to make
contracts................ 158
127........ Execution of documents (including deeds) by the
company itself. 158
Part 2B.2—Assumptions people dealing with companies are
entitled to make 160
128........ Entitlement to make assumptions.................................................. 160
129........ Assumptions that can be made under section 128......................... 160
130........ Information available to the public from ASIC does
not constitute constructive notice 162
Part 2B.3—Contracts before registration 163
131........ Contracts before registration.......................................................... 163
132........ Person may be released from liability but is not
entitled to indemnity 164
133........ This Part replaces other rights and liabilities.................................. 164
Part 2B.4—Replaceable rules and constitution 165
134........ Internal management of companies................................................. 165
135........ Replaceable rules............................................................................ 165
136........ Constitution of a company............................................................. 166
137........ Date of effect of adoption, modification or repeal
of constitution. 167
138........ ASIC may direct company to lodge consolidated
constitution...... 168
139........ Company must send copy of constitution to member................... 168
140........ Effect of constitution and replaceable rules.................................... 168
141........ Table of replaceable rules............................................................... 169
Part 2B.5—Registered office and places of business 171
142........ Registered office............................................................................. 171
143........ ASIC may change address of registered office to a
director’s address 171
144........ Company’s name must be displayed at registered
office etc......... 172
145........ Opening hours of registered office of public
company.................. 172
146........ Change of address of principal place of business........................... 173
Part 2B.6—Names 174
Division 1—Selecting and using a name 174
147........ When a name is available................................................................ 174
148........ A company’s name......................................................................... 175
149........ Acceptable abbreviations................................................................ 176
150........ Exception to requirement for using “Limited” in
name.................. 177
151........ Exception to requirement for using “Limited” in
name—pre‑existing licences 177
152........ Reserving a name............................................................................ 178
153........ Using a name and ACN on documents........................................... 178
154........ Exception to requirement to have ACN on receipts....................... 179
155........ Regulations may exempt from requirement to set out
information on documents 179
156........ Carrying on business using “Limited”, “No
Liability” or “Proprietary” in name 179
Division 2—Changing a company’s name 181
157........ Company changing its name........................................................... 181
158........ ASIC’s power to direct company to change its name.................... 181
159........ ASIC’s power to include “Limited” in company’s
name............... 182
160........ ASIC must issue new certificate if company’s name
changes........ 182
161........ Effect of name change..................................................................... 182
Part 2B.7—Changing company type 184
162........ Changing company type................................................................. 184
163........ Applying for change of type.......................................................... 186
164........ ASIC changes type of company..................................................... 188
165........ ASIC may direct a proprietary company to change to
a public company in certain circumstances 190
166........ Effect of change of type................................................................. 190
167........ Issue of shares by company or holding
company—company limited by guarantee changing to company limited by shares.............................................................................................. 191
167AA.. Application of Part to company limited both by shares
and by guarantee 192
Chapter 2C—Registers 193
Part 2C.1—Registers generally 193
167A..... Who is covered by this Chapter..................................................... 193
168........ Registers to be maintained.............................................................. 193
169........ Register of members....................................................................... 194
170........ Register of option holders and copies of options
documents........ 196
171........ Register of debenture holders......................................................... 197
172........ Location of registers....................................................................... 197
173........ Right to inspect and get copies....................................................... 198
174........ Agent’s obligations......................................................................... 200
175........ Correction of registers.................................................................... 201
176........ Evidentiary value of registers......................................................... 201
177........ Use of information on registers...................................................... 201
178........ Overseas branch registers............................................................... 202
Part 2C.2—Notice by proprietary companies of changes to
member register 203
178A..... Notice of change to member register............................................... 203
178B..... Top 20 only.................................................................................... 204
178C..... Notice of change to share structure................................................ 204
178D..... Time within which ASIC must be notified..................................... 204
Chapter 2D—Officers and employees 206
Part 2D.1—Duties and powers 206
179........ Background to duties of directors, other officers
and employees.. 206
Division 1—General duties 207
180........ Care and diligence—civil obligation only........................................ 207
181........ Good faith—civil obligations.......................................................... 208
182........ Use of position—civil obligations.................................................. 208
183........ Use of information—civil obligations............................................. 209
184........ Good faith, use of position and use of
information—criminal offences 209
185........ Interaction of sections 180 to 184 with other
laws etc.................. 210
186........ Territorial application of sections 180 to
184................................ 210
187........ Directors of wholly‑owned subsidiaries......................................... 211
188........ Responsibility of secretaries and directors for
certain contraventions 211
189........ Reliance on information or advice provided by
others................... 212
190........ Responsibility for actions of delegate............................................ 213
190A..... Limited application of Division to registrable
Australian bodies... 213
Division 2—Disclosure of, and voting on matters
involving, material personal interests 215
191........ Material personal interest—director’s duty to
disclose................. 215
192........ Director may give other directors standing notice
about an interest 217
193........ Interaction of sections 191 and 192 with
other laws etc................ 218
194........ Voting and completion of transactions—directors of
proprietary companies (replaceable rule—see section 135)........................................................................................................ 219
195........ Restrictions on voting—directors of public
companies only......... 219
196........ ASIC power to make declarations and class orders........................ 221
Division 3—Duty to discharge certain trust liabilities 222
197........ Directors liable for debts and other obligations
incurred by corporation as trustee 222
Division 4—Powers 223
198A..... Powers of directors (replaceable rule—see section 135)................ 223
198B..... Negotiable instruments (replaceable rule—see
section 135).......... 223
198C..... Managing director (replaceable rule—see section 135).................. 223
198D..... Delegation....................................................................................... 223
198E...... Single director/shareholder proprietary companies........................ 224
198F...... Right of access to company books................................................. 224
Part 2D.2—Restrictions on indemnities, insurance and
termination payments 226
Division 1—Indemnities and insurance for officers and
auditors 226
199A..... Indemnification and exemption of officer or auditor...................... 226
199B..... Insurance premiums for certain liabilities of
director, secretary, other officer or auditor 227
199C..... Certain indemnities, exemptions, payments and
agreements not authorised and certain documents void 228
Division 2—Termination payments 229
200A..... When benefit given in connection with retirement
from office....... 229
200B..... Retirement benefits generally need membership
approval............. 230
200C..... Benefits on transfer of undertaking or property need
membership approval 231
200D..... Contravention to receive benefit without member
approval.......... 231
200E...... Approval by members.................................................................... 232
200F...... Exempt benefits and benefits given in certain
circumstances......... 233
200G..... Genuine payments of pension and lump sum................................ 235
200H..... Benefits required by law................................................................. 237
200J...... Benefits to be held in trust for company........................................ 237
Part 2D.3—Appointment, remuneration and cessation of
appointment of directors 238
Division 1—Appointment of directors 238
201A..... Minimum number of directors........................................................ 238
201B..... Who can be a director..................................................................... 238
201D..... Consent to act as director............................................................... 238
201E...... Special rules for the appointment of public company
directors.... 239
201F...... Special rules for the appointment of directors for
single director/single shareholder proprietary companies 239
201G..... Company may appoint a director (replaceable
rule—see section 135).. 240
201H..... Directors may appoint other directors (replaceable
rule—see section 135) 240
201J...... Appointment of managing directors (replaceable
rule—see section 135) 241
201K..... Alternate directors (replaceable rule—see section 135)................. 241
201L...... Signpost—ASIC to be notified of appointment............................. 241
201M.... Effectiveness of acts by directors................................................... 241
Division 2—Remuneration of directors 243
202A..... Remuneration of directors (replaceable rule—see
section 135)..... 243
202B..... Members may obtain information about directors’ remuneration.. 243
202C..... Special rule for single director/single shareholder
proprietary companies 244
Division 3—Resignation, retirement or removal of
directors 245
203A..... Director may resign by giving written notice to
company (replaceable rule—see section 135) 245
203B..... Signpost to consequences of disqualification from
managing corporations 245
203C..... Removal by members—proprietary companies (replaceable
rule—see section 135) 245
203D..... Removal by members—public companies..................................... 245
203E...... Director cannot be removed by other
directors—public companies 247
203F...... Termination of appointment of managing director (replaceable
rule—see section 135) 247
Part 2D.4—Appointment of secretaries 248
204A..... Minimum number of secretaries..................................................... 248
204B..... Who can be a secretary................................................................... 248
204C..... Consent to act as secretary............................................................. 248
204D..... How a secretary is appointed......................................................... 249
204E...... Effectiveness of acts by secretaries................................................ 249
204F...... Terms and conditions of office for secretaries (replaceable
rule—see section 135) 249
204G..... Signpost to consequences of disqualification from
managing corporations 249
Part 2D.5—Public information about directors and
secretaries 250
205A..... Director, secretary or alternate director may notify
ASIC of resignation or retirement 250
205B..... Notice of name and address of directors and
secretaries to ASIC.. 250
205C..... Director and secretary must give information to
company............ 251
205D..... Address for officers........................................................................ 252
205E...... ASIC’s power to ask for information about person’s
position as director or secretary 253
205F...... Director must give information to company.................................. 253
205G..... Listed company—director to notify market operator of
shareholdings etc. 253
Part 2D.6—Disqualification from managing corporations 256
206A..... Disqualified person not to manage corporations............................ 256
206B..... Automatic disqualification.............................................................. 257
206BA.. Extension of period of automatic disqualification.......................... 258
206C..... Court power of disqualification—contravention of
civil penalty provision 258
206D..... Court power of disqualification—insolvency and non‑payment
of debts 259
206E...... Court power of disqualification—repeated
contraventions of Act 260
206F...... ASIC’s power of disqualification................................................... 260
206G..... Court power to grant leave............................................................. 262
206H..... Territorial application of this Part.................................................. 262
206HA.. Limited application of Part to registrable Australian
bodies.......... 263
Chapter 2E—Related party transactions 264
207........ Purpose........................................................................................... 264
Part 2E.1—Member approval needed for related party
benefit 264
Division 1—Need for member approval 264
208........ Need for member approval for financial benefit............................. 264
209........ Consequences of breach.................................................................. 265
Division 2—Exceptions to the requirement for member
approval 266
210........ Arm’s length terms......................................................................... 266
211........ Remuneration and reimbursement for officer or
employee............ 266
212........ Indemnities, exemptions, insurance premiums and
payment for legal costs for officers 267
213........ Small amounts given to director or spouse..................................... 268
214........ Benefit to or by closely‑held subsidiary........................................ 269
215........ Benefits to members that do not discriminate
unfairly.................. 269
216........ Court order..................................................................................... 269
Division 3—Procedure for obtaining member approval 270
217........ Resolution may specify matters by class or kind.......................... 270
218........ Company must lodge material that will be put to
members with ASIC 270
219........ Requirements for explanatory statement to members.................... 271
220........ ASIC may comment on proposed resolution................................. 272
221........ Requirements for notice of meeting................................................ 272
222........ Other material put to members....................................................... 272
223........ Proposed resolution cannot be varied............................................. 273
224........ Voting by or on behalf of related party interested
in proposed resolution 273
225........ Voting on the resolution................................................................. 274
226........ Notice of resolution to be lodged.................................................... 275
227........ Declaration by court of substantial compliance............................. 275
Part 2E.2—Related parties and financial benefits 276
228........ Related parties................................................................................ 276
229........ Giving a financial benefit................................................................ 277
Part 2E.3—Interaction with other rules 279
230........ General duties still apply............................................................... 279
Chapter 2F—Members’ rights and remedies 280
231........ Membership of a company............................................................ 280
Part 2F.1—Oppressive conduct of affairs 281
232........ Grounds for Court order................................................................. 281
233........ Orders the Court can make............................................................. 281
234........ Who can apply for order................................................................ 282
235........ Requirement for person to lodge order........................................... 283
Part 2F.1A—Proceedings on behalf of a company by members
and others 284
236........ Bringing, or intervening in, proceedings on behalf
of a company... 284
237........ Applying for and granting leave..................................................... 284
238........ Substitution of another person for the person
granted leave.......... 286
239........ Effect of ratification by members................................................... 286
240........ Leave to discontinue, compromise or settle
proceedings brought, or intervened in, with leave 287
241........ General powers of the Court.......................................................... 287
242........ Power of the Court to make costs orders....................................... 288
Part 2F.2—Class rights 289
246B..... Varying and cancelling class rights.................................................. 289
246C..... Certain actions taken to vary rights etc.......................................... 290
246D..... Variation, cancellation or modification without
unanimous support of class 291
246E...... Variation, cancellation or modification with
unanimous support of class 292
246F...... Company must lodge documents and resolutions with
ASIC........ 292
246G..... Member’s copies of documents and resolutions............................ 293
Part 2F.3—Inspection of books 295
247A..... Order for inspection of books of company or
registered managed investment scheme 295
247B..... Ancillary orders.............................................................................. 296
247C..... Disclosure of information acquired in inspection........................... 296
247D..... Company or directors may allow member to inspect
books (replaceable rule see section 135) 296
Chapter 2G—Meetings 297
Part 2G.1—Directors’ meetings 297
Division 1—Resolutions and declarations without meetings 297
248A..... Circulating resolutions of companies with more than
1 director (replaceable rule see section 135) 297
248B..... Resolutions and declarations of 1 director
proprietary companies 297
Division 2—Directors’ meetings 299
248C..... Calling directors’ meetings (replaceable rule see
section 135)....... 299
248D..... Use of technology........................................................................... 299
248E...... Chairing directors’ meetings (replaceable rule
see section 135)..... 299
248F...... Quorum at directors’ meetings (replaceable rule
see section 135). 299
248G..... Passing of directors’ resolutions (replaceable
rule see section 135) 300
Part 2G.2—Meetings of members of companies 301
Division 1—Resolutions without meetings 301
249A..... Circulating resolutions of proprietary companies
with more than 1 member 301
249B..... Resolutions of 1 member companies.............................................. 302
Division 2—Who may call meetings of members 303
249C..... Calling of meetings of members by a director (replaceable
rule—see section 135) 303
249CA.. Calling of meetings of members of a listed company by
a director 303
249D..... Calling of general meeting by directors when
requested by members 303
249E...... Failure of directors to call general meeting...................................... 304
249F...... Calling of general meetings by members......................................... 305
249G..... Calling of meetings of members by the Court................................ 305
Division 3—How to call meetings of members 306
249H..... Amount of notice of meetings........................................................ 306
249HA.. Amount of notice of meetings of listed company.......................... 306
249J...... Notice of meetings of members to members and
directors............. 307
249K..... Auditor entitled to notice and other communications.................... 308
249L...... Contents of notice of meetings of members................................... 308
249LA... Notice of meeting not required to contain certain
information....... 309
249M.... Notice of adjourned meetings (replaceable rule—see
section 135) 310
Division 4—Members’ rights to put resolutions etc. at
general meetings 311
249N..... Members’ resolutions..................................................................... 311
249O..... Company giving notice of members’ resolutions........................... 311
249P...... Members’ statements to be distributed.......................................... 312
Division 5—Holding meetings of members 314
249Q..... Purpose........................................................................................... 314
249R..... Time and place for meetings of members....................................... 314
249S...... Technology..................................................................................... 314
249T..... Quorum (replaceable rule—see section 135).................................. 314
249U..... Chairing meetings of members (replaceable
rule—see section 135) 315
249V..... Auditor’s right to be heard at general meetings.............................. 315
249W.... Adjourned meetings........................................................................ 316
Division 6—Proxies and body corporate representatives 317
249X..... Who can appoint a proxy (replaceable rule for
proprietary companies and mandatory rule for public companies—see section 135)..................................................................................... 317
249Y..... Rights of proxies............................................................................. 317
249Z..... Company sending appointment forms or lists of
proxies must send to all members 318
250A..... Appointing a proxy........................................................................ 318
250B..... Proxy documents............................................................................ 320
250BA.. Proxy documents—listed companies............................................. 321
250C..... Validity of proxy vote.................................................................... 321
250D..... Body corporate representative....................................................... 322
Division 7—Voting at meetings of members 323
250E...... How many votes a member has (replaceable
rule—see section 135) 323
250F...... Jointly held shares (replaceable rule—see
section 135)................. 323
250G..... Objections to right to vote (replaceable rule—see
section 135)..... 323
250H..... Votes need not all be cast in the same way.................................... 324
250J...... How voting is carried out (replaceable rule—see
section 135)...... 324
250K..... Matters on which a poll may be demanded.................................... 324
250L...... When a poll is effectively demanded.............................................. 324
250M.... When and how polls must be taken (replaceable
rule—see section 135) 325
Division 8—AGMs of public companies 326
250N..... Public company must hold AGM.................................................. 326
250P...... Extension of time for holding AGM............................................... 326
250PA... Written questions to auditor submitted by members of
listed company before AGM 327
250R..... Business of AGM.......................................................................... 329
250RA.. Auditor required to attend listed company’s AGM...................... 329
250S...... Questions and comments by members on company
management at AGM 330
250SA... Listed company—remuneration report.......................................... 330
250T..... Questions by members of auditors at AGM.................................. 330
Part 2G.3—Minutes and members’ access to minutes 332
251A..... Minutes.......................................................................................... 332
251AA.. Disclosure of proxy votes—listed companies................................ 333
251B..... Members’ access to minutes.......................................................... 333
Part 2G.4—Meetings of members of registered managed
investment schemes 335
Division 1—Who may call meetings of members 335
252A..... Calling of meetings of members by responsible entity................... 335
252B..... Calling of meetings of members by responsible entity
when requested by members 335
252C..... Failure of responsible entity to call meeting of the
scheme’s members.. 336
252D..... Calling of meetings of members by members................................. 337
252E...... Calling of meetings of members by the Court................................ 337
Division 2—How to call meetings of members 338
252F...... Amount of notice of meetings........................................................ 338
252G..... Notice of meetings of members to members, directors
and auditors 338
252H..... Auditors entitled to other communications.................................... 339
252J...... Contents of notice of meetings of members................................... 339
252K..... Notice of adjourned meetings......................................................... 340
Division 3—Members’ rights to put resolutions etc. at
meetings of members 341
252L...... Members’ resolutions..................................................................... 341
252M.... Responsible entity giving notice of members’
resolutions............. 342
252N..... Members’ statements to be distributed.......................................... 342
Division 4—Holding meetings of members 345
252P...... Time and place for meetings of members....................................... 345
252Q..... Technology..................................................................................... 345
252R..... Quorum........................................................................................... 345
252S...... Chairing meetings of members........................................................ 346
252T..... Auditors’ right to be heard at meetings of members....................... 346
252U..... Adjourned meetings........................................................................ 346
Division 5—Proxies and body corporate representatives 347
252V..... Who can appoint a proxy............................................................... 347
252W.... Rights of proxies............................................................................. 347
252X..... Responsible entity sending appointment forms or
lists of proxies must send to all members 348
252Y..... Appointing a proxy........................................................................ 348
252Z..... Proxy documents............................................................................ 349
253A..... Validity of proxy vote.................................................................... 351
253B..... Body corporate representative....................................................... 351
Division 6—Voting at meetings of members 353
253C..... How many votes a member has...................................................... 353
253D..... Jointly held interests...................................................................... 353
253E...... Responsible entity and associates cannot vote if
interested in resolution 353
253F...... How to work out the value of an interest....................................... 353
253G..... Objections to a right to vote........................................................... 354
253H..... Votes need not all be cast in the same way.................................... 354
253J...... How voting is carried out............................................................... 354
253K..... Matters on which a poll may be demanded.................................... 355
253L...... When a poll is effectively demanded.............................................. 355
Division 7—Minutes and members’ access to minutes 356
253M.... Minutes.......................................................................................... 356
253N..... Members’ access to minutes.......................................................... 356
Chapter 2H—Shares 358
Part 2H.1—Issuing and converting shares 358
254A..... Power to issue bonus, partly‑paid, preference
and redeemable preference shares 358
254B..... Terms of issue................................................................................ 359
254C..... No par value shares........................................................................ 360
254D..... Pre‑emption for existing shareholders on issue
of shares in proprietary company (replaceable rule—see section 135)........................................................................................................ 360
254E...... Court validation of issue................................................................. 361
254F...... Bearer shares and stock must not be issued................................... 361
254G..... Conversion of shares...................................................................... 361
254H..... Resolution to convert shares into larger or smaller
number............ 362
Part 2H.2—Redemption of redeemable preference shares 363
254J...... Redemption must be in accordance with terms of
issue................. 363
254K..... Other requirements about redemption............................................ 363
254L...... Consequences of contravening section 254J or
254K.................... 363
Part 2H.3—Partly‑paid shares 365
254M.... Liability on partly‑paid shares....................................................... 365
254N..... Calls may be limited to when company is externally‑administered 365
254P...... No liability companies—calls on shares......................................... 365
254Q..... No liability companies—forfeiture and sale of shares
for failure to meet call 366
254R..... No liability companies—redemption of forfeited
shares............... 369
Part 2H.4—Capitalisation of profits 370
254S...... Capitalisation of profits................................................................. 370
Part 2H.5—Dividends 371
254T..... Dividends to be paid out of profits................................................ 371
254U..... Other provisions about paying dividends (replaceable
rule—see section 135) 371
254V..... When does the company incur a debt?........................................... 371
254W.... Dividend rights............................................................................... 371
Part 2H.6—Notice requirements 373
254X..... Notice to ASIC of share issue........................................................ 373
254Y..... Notice to ASIC of share cancellation.............................................. 374
Chapter 2J—Transactions affecting share capital 375
Part 2J.1—Share capital reductions and share buy‑backs 375
256A..... Purpose........................................................................................... 375
Division 1—Reductions in share capital not otherwise
authorised by law 376
256B..... Company may make reduction not otherwise authorised.............. 376
256C..... Shareholder approval...................................................................... 377
256D..... Consequences of failing to comply with section 256B.................. 378
256E...... Signposts to other relevant provisions........................................... 378
Division 2—Share buy‑backs 380
257A..... The company’s power to buy back its own shares....................... 380
257B..... Buy‑back procedure—general........................................................ 380
257C..... Buy‑back procedure—shareholder approval if the
10/12 limit exceeded 382
257D..... Buy‑back procedure—special shareholder
approval for selective buy‑back 383
257E...... Buy‑back procedure—lodgment of offer
documents with ASIC... 384
257F...... Notice of intended buy‑back.......................................................... 384
257G..... Buy‑back procedure—disclosure of relevant
information when offer made 385
257H..... Acceptance of offer and transfer of shares to the
company........... 385
257J...... Signposts to other relevant provisions........................................... 385
Division 3—Other share capital reductions 388
258A..... Unlimited companies...................................................................... 388
258B..... Right to occupy or use real property............................................. 388
258C..... Brokerage or commission..................................
